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FANNIE MAE UNLOADS
HUNDREDS OF
DELINQUENT LOANS
Fannie Mae recently announced the winning
bidders of its most recent Community Impact
Pools of nonperforming loans. Matawin
Ventures XX, LLC, won Fannie's seventh pool,
while Community Development Fund IV, LLC
(CDF), won the eighth pool.
With an expected closing date of August 15,
2017, the transaction will include $31.9 million
in unpaid principal balance and 123 loans spread
across New York and New Jersey.
Broken down, Matawin's pool includes 67
loans with a total unpaid principal balance of
just over $19 million. e average loan size is
$289,138, and the weighted average delinquency
rate is 53 months. Weighted average note rates
and loan-to-value ratios are 4.35 percent and
65.17 percent, respectively.
On CDF's pool, there are 56 loans with a
total unpaid principal balance of $12.5 million.
e average loan size is $225,384, with an average
delinquency rate of 30 months. e weighted
average note rate and loan-to-value ratio are 4.48
percent and 97.31 percent, respectively.
Bidding began on the pools in May of this
year. Wells Fargo Securities, LLC and e
Williams Capital Group, L.P. collaborated on
marketing the loans.
e second-highest bids on these latest
pools—considered the "cover bids"—are 75
percent of the unpaid principal balance on the
first pool and 69 percent of the second.
Joy Cianci, Fannie Mae's SVP for Single-
Family, Special, and Distressed Assets, has said
previously that the sale of these nonperforming
loans is an effort to aid underwater borrowers.
"We are offering these non performing
loans and this community impact pool to
diverse investors in an attempt to expand the
opportunities available to borrowers who are
significantly delinquent on their mortgage
to avoid foreclosure," Cianci said regarding
previous sales.
According to Fannie Mae, Community
Impact Pools generally have a smaller balance
than other pools of nonperforming loans, and
they are more geographically focused. ey
are also often marketed toward nonprofit
organizations, minority- and women-owned
businesses, and smaller investors.
Buyers of these pools are required to offer
loss mitigation options to borrowers before
moving into foreclosure.
Of millennials
who believe real
estate is the best
investment for
their money.
Source: Bankrate Financial Security Index
STAT INSIGHT
30%
